One-glance verdict
Overvalued
$535.30 our estimate vs market $894.77
Wall Street consensus: $1,147.35 (114.3% higher than our fair-value estimate)
67% above our estimate, beyond the bull case
Fundamentals snapshot
argenx SE
ARGX · NMS · Healthcare · Biotechnology
Current price
$894.77
52-week range
$661.85 - $1,072.75
Market cap
$56.27B
Balance sheet
Healthy
258.36x Strong cushion
Net cash $5.14B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 89.6% last year.
- Reward Free cash flow was positive in 1/10 years.
- Reward Trades at 31.0x P/E vs peer median 38.2x (18.9% cheaper).
- Risk Insider ownership is only 0.0% (peer median: 0.2%).
What this company does
argenx SE
Argenx SE is a drug company that makes medicines to help people with immune system problems, like those that attack the body's own tissues. Most of their money comes from selling their main drug, VYVGART, and others like it, which is important because it shows their treatments are working for patients and bringing in steady income.
How the company got here
Argenx SE started in 2008 with a focus on developing innovative treatments for autoimmune diseases, conditions where the body's immune system mistakenly attacks its own healthy tissues. The company's journey has been marked by significant scientific advancements and strategic partnerships. A key turning point was the development of their core technology targeting the neonatal Fc receptor (FcRn), which plays a crucial role in regulating antibody levels in the body. This scientific breakthrough paved the way for their most successful drug to date and positioned argenx as a leader in the biotechnology sector.
What it actually does
Argenx SE is a biopharmaceutical company that creates medicines to treat people with severe autoimmune diseases. These are illnesses where the body's defense system, which is supposed to fight off germs, mistakenly attacks its own healthy cells. Argenx focuses on developing antibody-based therapies, which are like targeted missiles designed to stop these harmful immune responses. Their goal is to provide new options for patients who currently have limited or no effective treatments available.
VYVGART & VYVGART HYTRULO
This is argenx's primary business line, centered around its flagship treatments, VYVGART and VYVGART HYTRULO. These drugs are designed to treat specific autoimmune conditions like generalized Myasthenia Gravis (gMG), a condition causing muscle weakness, and Immune Thrombocytopenia (ITP), which leads to low blood platelet counts. They work by targeting and reducing the levels of harmful antibodies that cause these diseases. This segment represents the company's main source of revenue, making it the largest part of their operations.
Pipeline Candidates
Beyond its currently approved treatments, argenx is actively developing a range of other potential therapies for various autoimmune and rare diseases. This includes drugs like empasiprubart and adimanebart, which are in different stages of clinical testing for conditions such as chronic inflammatory demyelinating polyneuropathy (CIDP) and congenital myasthenic syndrome. This 'pipeline' represents future growth potential for the company, as these experimental drugs could become new revenue streams if they prove safe and effective in further studies.
What management is betting on now
Management at argenx is focused on expanding the reach of their existing successful treatments, like VYVGART, to more patients and for additional approved conditions. They are also heavily investing in their robust pipeline of experimental drugs, aiming to bring new therapies for autoimmune diseases to market. A key strategy involves forging partnerships with other pharmaceutical companies to help develop and distribute their medicines globally, ensuring these treatments can help as many people as possible.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $535.30 vs current price $894.77
Wall Street consensus is the average analyst price target: $1,147.35 (114.3% higher than our fair-value estimate).
Our most-likely fair value is $535.30 a share — about 40.2% below today's price of $894.77, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $5.1B - more cash than debt. Interest coverage 258.4x.
Net debt
$-5.14B
Interest coverage
258.36x
argenx SE's profit covers its interest bill about 258.4 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
ARGX
BASELINE
argenx SE
Total debt $47.00M Interest coverage 258.36x This is the baseline the peer rows are being compared against.
Total debt $2.71B Interest coverage 84.52x -67% vs ARGX Carries about 3.1x less debt cushion than ARGX.
Total debt $6.48B Interest coverage 342.44x +33% vs ARGX Carries about 1.3x more debt cushion than ARGX.
Total debt $26.23B Interest coverage 11.43x -96% vs ARGX Carries about 22.6x less debt cushion than ARGX.
Total debt $5.27B Interest coverage 20.49x -92% vs ARGX Carries about 12.6x less debt cushion than ARGX.
Total debt $7.80B Interest coverage 9.23x -96% vs ARGX Carries about 28.0x less debt cushion than ARGX.
What you should know
The case for and against ARGX
3 Rewards
1 Risk
Rewards
-
Revenue grew 89.6% last year.
-
Free cash flow was positive in 1/10 years.
-
Trades at 31.0x P/E vs peer median 38.2x (18.9% cheaper).
Risks
-
Insider ownership is only 0.0% (peer median: 0.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.99x
Forward P/E
26.86x
P/B
166.20x
P/S
9.51x
EV/EBITDA
733.16x
PEG ratio
1.25x
Profitability
How much profit each dollar creates
Gross margin
59.8%
Operating margin
36.3%
Net margin
31.7%
ROE
—
ROA
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Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
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Quick ratio
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Total debt
$47.00M
Total cash
$5.18B
Growth
How the business has been compounding
Revenue TTM
$5.92B
Revenue 5Y CAGR
116.2%
EPS TTM
28.87
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$685.19M
Free CF TTM
$573.51M
FCF margin
9.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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